Everyone that has big responsibilities, like a spouse or children, can certainly see the benefits of protection designed to last your entire lifetime. One of the best things that you can do in this life is to provide financial protection for your family upon your death. Before you buy any policy, ask a financial advisor if you’re better off buying whole life insurance, rather than some other type of permanent insurance, or a term life policy.
Whole life insurance might be a wise choice, depending on your current situation, but term life insurance is quite sufficient for many families. Consult NCSF Insurance because their agents can offer expert advice and they can also recommend financial products they feel will service your needs.
Whole life versus term insurance
Whole life insurance is a permanent policy that offers you guaranteed protection for your loved ones over your lifetime. Participating whole life policies are eligible to earn dividends that can increase your death benefit and the cash value of the policy. There are also other options you could choose, including the use of your dividends to help pay premiums.
A whole life policy can serve as a source of emergency funds for you if something unexpected happens. You may be able to take out a loan against the policy because a portion of each of your premium payments is put into a savings component of the policy called the “cash value.” With whole life insurance, unlike term, you earn guaranteed cash value, and this can be very useful when you need it the most.
The rules on how and when you can do this will vary from company to company. Remember that there may be certain guidelines to follow in order that you don’t inadvertently reduce the death benefit or create an unnecessary tax burden.
The cost of a whole life policy from NCSF Insurance depends on several factors, such as your age, health and life expectancy, any of which may affect the premiums you pay for your policy. When it comes to paying premiums, you’ll typically be offered the option to pay monthly, quarterly or twice a year. Be aware that paying premiums more frequently than once per year means that you may incur additional fees. Speak to your agent for more specific information.